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- Hai Ha Dianne Nguyen
In the money transfer business, Transfer means sending the money from one account to another, it can be national or International. While remittance of money is a term used nowadays to describe the money that is transferred by a person working abroad to his family or dear once at his/her home nation.
Money Transfer
Money transfer business refers to sending money from one account to another account. Despite of the fact that there are various methods of money transfer; Migrants and labours from within the country generally uses DMT (Domestic Money Transfer) to transfer the money domestically to their families as they do not have access to the formal banking system for proof of the residency or identity. This is a cash to bank transfer facility available for walk in customers (Not holding a bank account or are not convenient to use the online money transfer methods). This money transfer business surely enables them to send money to their loved ones.
How does a money transfer services franchise work?
Here the person gives cash to the money transfer agency and then the money transfer distributor transfers the money into the account of the recipient. These agents can be any shopkeeper who have direct contact with labourers and offer the service in exchange of commission provide to them by the companies whose money transfer services franchise the shopkeeper has paid for.
How to avail DMT Facility?
Visit any Domestic money transfer agency (Retailer, shopkeeper, tea stall etc. who are money transfer distributor) hand over your cash and the bank details of person, you wish to transfer your money to. The agent will immediately transfer the money to recipient’s account, and earn a handsome commission in the process.
Remittance of money
Most remittance of money is made by workers in foreign countries to their families living in home-country. Remittance have comparatively a large role in the developing nation as compared to developed nation. Worker’s remittance of money is a significant part of international capital flow, especially with regard to labour exporting countries. India is one of the labour exporting countries that ranks on top as receiver of remittances, claiming more than 12% of the world’s remittance.
Working of Remittance.
Let’s assume that one wants to send money from Canada to India. Here the person needs to pre-fund his bank account with significant money that he needs to send.
Once money reaches India. The person needs to contact to contact their local branch or the treasury department to obtain the Euro to India currency as per the conversion rate.
Money Transfer
Remittance of money
Differences
Transfer of money to any account (Domestic or International).
Transfer of money from abroad to home-country.
DMT is one of the most popular mode of transferring.
Wire transfer is a popular mode of transferring.
DMT is a cash to bank transfer.
Wire transfer is a bank to bank transfer.
DMT is generally used by the migrant labours or labours who do not have access to bank account or are not comfortable using banking facilities.
This is generally done by labour working in abroad to send money to family in their home-country.
